Glediana Zeneli
Faculty of Natural Sciences, University of Tirana, Albania
Arsen Benga
Faculty of Engineering and Technology, American University of the Middle East, Kuwait
DOI: https://doi.org/10.31410/eraz.2018.137
4th International Conference – ERAZ 2018 – KNOWLEDGE BASED SUSTAINABLE ECONOMIC DEVELOPMENT, Sofia- Bulgaria, June 7, 2018, CONFERENCE PROCEEDINGS published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; Faculty of Business Studies, Mediterranean University – Podgorica, Montenegro; University of National and World Economy – Sofia, Bulgaria; Faculty of Commercial and Business Studies – Celje, Slovenia; Faculty of Applied Management, Economics and Finance – Belgrade, Serbia, ISBN 978-86-80194-12-7
Abstract
Microfinance has been growing rapidly with the aim to lift people out of poverty and create sustainable development. However, according to some l The basis for any investment is the desire to benefit from positive returns. This additional return means risk acceptance. So we need to be able to determine both return and risk at the portfolio level. In this section, we portray the portfolio in terms of return and risk and note that risk assessment is a complex problem when the portfolio contains a large number of assets. The reason lies in the fact that the assets are correlated with one another and consequently the correlation will help us to understand the combined returns on the asset portfolio, in other words to understand the risk of the portfolio.
One of the factors considered when choosing the optimal portfolio for an investor is the level of risk-aversion, the investor’s risk preference versus expected return.
Key words
Optimal Portfolio, Efficient Frontier, Risk.
References
- Arunkumar, Rekha, and G Kotreshwar. “Risk Management in Commercial BankS.” The Financial Express, 2004.
- H. Markowitz (1952,1959): Portfolio Selection. Journal of Finance 8: 77–91.
- W.Chen,H Chung ,K. Ho,T.Hsu 2010 “Portfolio optimization models and mean-variance spanning tests “Handbook of Quantitative Finance and Risk Management chapter 10.
- O. Stringa, Financial Mathematics
- Arrow, K. 1970. Essays in the Theory of Risk Bearing. Amsterdam: North-Holland.
- Bank of Albania, Yearly Publications
- https://www.fshn.edu.al-doktoraturat/Doktorata-Gledjana%20Zeneli-Matematike e Aplikuar.pdf